UCITS V

Overview

The UCITS (Undertakings for Collective Investment in Transferable Securities) Directive takes up most of the current legislative framework of UCITS IV & AIFM Directives. The new provisions focus on the fund depositary, the remuneration policy and the applicable regime for sanctions.

The UCITS Directive aims at strengthening asset protection, transparency and information to investors.

Main provisions

Eligibility of depositaries is limited to Credit institutions and MiFID regulated companies. The depositary has to be located in the fund domicile (no depositary passport).

Strong liability regime for the depositary, which is liable to the UCITS and its unit holders for the loss related to the assets held in custody, unless the depositary can prove that the loss has arisen as a result of an external event beyond its reasonable control.

Increased cash monitoring obligations, similar to AIFMD provisions.

Reinforced obligations for the selection of the depositary.

Transparent management companies remuneration policies (to be provided in the KIID, the prospectus and in the annual reports).